Good news in the Crypto Currency market as Bitcoin continues to climb adding significant upward gains for everyone. This came on the back of news that the UK will be looking at regulating digital currencies as financial. Going as far as saying that one CBDC will eventually be the one world digital payment currency.
Although the news is welcomed the sector may be up for suffering another major blow at the hands of a centralised exchange (CEX) once again. With all the blows the market has taken due to CEX's playing about with the sector, it's any wonder why regulators are moving in to drive reform. Much of which excludes Decentralised Exchanges (DEX).
That news helps the market understand the future and retain confidence in established DEX's that are unable to be tampered with by developers. Other than hacks and code exploits DEX's don't appear to be causing too much issue within the broader sector.
But the CEX behind the possible coming hit is none other than the collapsed FTX with further issues plaguing not just the platform but also the former founder in his current court case.
With the upcoming court case against Sam the former founder of FTX his lawyers are planning on quizzing jurors to grasp their understanding of Crypto currency, ADHD and Altruism in an attempt on cancelling the jurors that could potentially be biased towards the Decentralised Finance (De-Fi).
Whilst the move by defendants to quiz jurors in order to disqualify some is not new and is done before each case, this case though is unique as Crypto Currency is a hot topic in it's current form. It is a constant discussion around kitchen tables and no doubt there is bound to be a lot of people FTX burned due to the allegations being thrown at Sam and Co.
So Sam's team will need a way to try and identify any potential conflicts of interest or more so, anyone wanting to seek revenge against Sam for suffering heavy losses. Although, not disclosing such things could also run the risk of causing a mistrial.
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Although the question being asked isn't all to extensive or goes that deep into a jurors involvement it is left quite open as all things in law are. No doubt this is a trap for any of the jurors who might be harbouring ill will against Sam.
No doubt Sam's defence team will do a background search on all jurors and their plan would be to find one lying, await for the trial to end, find Sam guilty than appeal on the basis of a mistrial, setting the man FREE.
While Sam awaits his outcome his legacy continues to live on of such a failed institution which is currently looking at dumping billions of Crypto on the open market which is causing significant anxiety to investors as news begins to circulate.
FTX currently holds USD3.4 Billion in assets that they have requested regulators allow them to liquidate on the open market, given the weakness of Crypto Currency at the moment and how everyone knows it is paper thin it will be interesting if regulators approve the request as they are currently trying to prevent future market crashes resolving in more people losing their funds.
FTX is also attempting to call in some of the liquidity it has on other exchanges to the value of USD21 Million dollar's in the hopes of gaining enough assets to pay back the investment funds FTX was provided to start up.
Bear or Bull
While USD 3.4 Billion is not a lot of money it is yet to see what impact it will have on the broader Crypto market which currently has a market cap of over USD1 Trillion dollars. It may be able to abosrb that hit with limited damage resulting in a brief discount of Bitcoin or it might trigger another Bear market at the end of the year.
It is hopeful that once FTX fully liquidats and leaves the sector its damage that it caused will finallt be over and it will be delegated as a footnote of what once was in the digital asset world.
What are your thoughs on the likely next steps, will regulators approve the mass dump?
image sources provided supplemented by Canv Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
